Chapter 8

Question 1

5 major types of accounting

Answer 1

Assets
Liabilities
Capital
Revenue
Expenses

Question 2

Real or permanent accounts

Answer 2

Assets
Liabilities
Capital

Question 3

Nominal/
Temporary accounts

Answer 3

Revenues
Expenses

Question 4

Tangible assets (physical forms)

Answer 4

Land, buildings, vehicles, equipment, inventory

Question 5

Intangible assets (represent money/value)

Answer 5

Accounts receivables
Patents
Contracts
Certificates of investment

Question 6

Items that are completely consumed, sold, or converted into cash within one year (liquidity)

Answer 6

A. Cash and its equivalents
B. Marketable securities
C. Accounts receivable
D. Notes receivable
E. Merchandise inventory
F. Prepaid expenses
G. Contra asset account